Encouraged by their improved profits in 2021, one of the island’s largest retail chains, Jumbo, is gearing up to open a second mega store in Nicosia, the sixth in Cyprus.
Reportedly, Greek-owned Jumbo Cyprus has already started setting up a second store in Nicosia, at the capital’s entrance, in the vicinity of the Cyprus Mall.
According to the company’s annual financial statement, the Group’s profit for 2021 was €24.2 mln compared to €16.6 mln in 2020.
Store turnovers were also up, as Jumbo’s turnover increased by 12.3%, reaching €88.8 million from €79.1 million in 2020.
At the same time, gross profitability increased by 21.2% and profit for the year by 46.1%.
Boosted by its stores’ performance, Jumbo has decided to lunch a second store in the capital, just a few kilometres away from the one in Lakatamia.
Jumbo Cyprus reportedly acquired the former Mazda Showroom near the Cyprus Mall.
The two-story building, formerly owned by Mazda importers, the Stephanides Group, offers 10,476 square metres of useful area.
The specific property consists of a ground floor area of 5184 sqm, a floor of 4599 sq.m. and a basement of 2565 sq.m and seems like an ideal choice given the company’s preference for large floor space.
Plans foresee the creation of 331 parking spots on the roof of the building, including 33 for people with disabilities.
The parking lot will be covered with metal canopies equipped with photovoltaic panels.
Jumbo Cyprus has bought the property, once owned by the Stephanides group, from the Bank of Cyprus’ Real Estate Management Unit (REMU). The bank had been asking for €18.3 mln for the site.
Local residents and real estate actors perceive a second Jumbo store in Nicosia with scepticism, as they claim it will only bring more road traffic to an area already gridlocked.
The area is home to the Cyprus Mall, Ikea, Leroy Merlin, the Nicosia General Hospital and a number of other retail stores, causing traffic jams at one of the only two exits of Nicosia.
“Now a new Jumbo department store to be located at the ex-Mazda building has been added, with a huge demand for parking and access facilities, which, with the retail space at 10,500 sqm, you can understand what will happen,” said veteran real estate agent Antonis Loizou.
He argued that a simple comparison of the same project at Lakatamia would discourage even the most ardent supporters of this location.
Meanwhile, Jumbo has come to an agreement with Israeli retail company Fox-Wizel for the purchase of their franchise rights for the country.
The first Jumbo store in Israel is set to come online in September.
Apart from the five stores in Cyprus, Jumbo has 52 in Greece, 9 in Bulgaria and 14 in Romania, employing close to 7,000 employees.
Jumbo franchise stores can be found in Albania, Kosovo, Serbia, North Macedonia, Bosnia, and Montenegro.
Earlier this year, Jumbo announced that efforts were being made to open an e-Jumbo store in Romania.
Jumbo Cyprus was contacted by the Financial Mirror for comment on their latest venture but declined and refused to confirm they are building a new store.